homeenergy NewsPetrol, diesel production more than sufficient for any demand surge in the country: Oil ministry
Petrol, diesel production more than sufficient for any demand surge in the country: Oil ministry
The Oil Ministry said the unprecedented growth has created a few temporary logistics issues at the local-level. However, petrol and diesel production is more than enough in the country to take care of any surge in demand, it added.
Petrol and diesel production in the country is more than sufficient to look after any demand surge, the oil ministry said in a statement, adding that sufficient supply is being made available to cater to the added demand.
The ministry said in the last few days some areas reported a rise in instances of rush at PSU retail outlets, which led to delays and increased waiting time for consumers. This resulted in speculation of supply constraints by the public sector oil marketing companies, the statement said.
Further, it said there has been a significant rise in demand for petrol and diesel demand at certain locations in some states, with an increase being as high as 50 percent in the first half of this month, compared to the corresponding period last year.
It added that in states such as Rajasthan, Madhya Pradesh, and Karnataka, large quantities were being supplied by the retail outlets belonging to the private marketing companies and where the distances from supply locations (terminals and depots) are longer.
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"The increase in demand has been on account of the seasonal surge in demand due to agricultural activities, Bulk buyers having shifted their purchases to retail outlets, and a substantial reduction in the sales by private marketing companies with their substantial volumes having shifted to PSU ROs. Simultaneously, as a result of a crackdown by the government on illegal bio-diesel sales, these volumes have also been added to the RO diesel sale," the statement said.
The ministry said the unprecedented growth has created a few temporary logistics issues at the local-level. "Oil companies have geared up to tackle these issues by raising the stocks at the depots and terminals; extra movement of tank trucks and lorries to serve the retail outlets; extended working hours of depots and terminals including at night, to cater to the extra demand, and provision of extra quantities of fuels for supply in the affected States," the ministry said.
First Published: Jun 15, 2022 7:23 PM IST
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